Wednesday 07 July 2021
Possession is no longer a problem
Knorr Brems retreats in Hella
The family business officially threw its hat into the ring just a week ago. Now truck and train brake maker Knorr-Bremse is abandoning the acquisition of headlight specialist Hella. Knorr-Bremse’s withdrawal sent Hella shares down more than 2%.
Munich-based brake company Knorr-Bremse has dropped out of the race in favor of headlight specialist Hella. The board of directors came to the conclusion that the capabilities, technologies and key products of Lipstadt’s auto suppliers cannot easily be transferred to its own portfolio in rail and truck technology that will eventually pay off, Knor Brems explained. .
Just a week ago, the family business officially threw its hat into the ring. Only then was it confirmed that Hella’s majority owners, the Hueck and Röpke families, were looking for a buyer for their 60 per cent stake, which is worth four billion euros. Knorr-Bremse’s withdrawal sent Hella shares in Lang & Schwarz trading down 2.3 percent. According to informed sources, French competitors Faurecia and Plastic Omnium are also interested in the stake in Hella.
Financial investors should also look at Hella. Investment bank Rothschild, charged with the search for a buyer, wants to narrow the field of tenders soon, according to financial circles. CEO Jan Morsek later explained the move: “We always have in mind opportunities to increase the value of transactions with leading global companies. That’s why we looked at Hella.” “However, potential efficiencies transfer opportunities, particularly in the commercial vehicle sector, have not been sufficiently emphasized for us.”
Knorr Brems focused primarily on Hella’s work with sensors. It’s a prerequisite for autonomous driving, which the Munich-based company also sees as a future opportunity for trucks. Knorr is currently purchasing the technology for this from Continental. Knorr-Bremse shares tumbled and fell to an annual low of 88 euros after plans for the acquisition became known. Entry would have made a mandatory bid for all Hella contributors. The company is valued at more than 6.4 billion euros on the stock exchange.
